World markets mixed after S&P 500 hits record high

World shares were mixed on Wednesday after the benchmark S&P 500 closed at another record high following a report that the US economy grew at an unexpectedly strong 4.3 per cent annual rate in July to September.

The futures for the S&P 500 and the Dow Jones Industrial Average were down less than 0.1 per cent.

Britain’s FTSE 100 was down 0.2 per cent at 9,870.89, while the CAC 40 in Paris added 0.2 per cent to 8,121.32.

Stock exchanges, including those in London, Paris, Hong Kong and Australia, have closed early or will be closing early on Christmas Eve. Germany’s markets were closed for the day.

US markets will end early on Wednesday for Christmas Eve and stay closed for Christmas.

In Asian trading, Tokyo’s Nikkei 225 fell 0.1 per cent to 50,344.10, and South Korea's Kospi slipped 0.2 per cent to 4,108.62.

Hong Kong’s Hang Seng gained 0.2 per cent to 25,818.93. The Shanghai Composite index edged 0.5 per cent higher, to 3,940.95.

In Australia, the S&P/ASX 200 slipped nearly 0.4 per cent to 8,762.70. Taiwan’s Taiex picked up 0.2 per cent while the Sensex in India fell 0.1 per cent.

Gold and silver extended their rally after hitting record highs this week, driven by heightened geopolitical tensions. The price of gold rose 0.3 per cent early Wednesday to USD 4,525.20 per ounce, adding to gains of about 70 per cent for the year. Silver rose 1.6 per cent.

On Tuesday, big gains for tech stocks pushed the S&P 500 up 0.5 per cent, even though most stocks in the index fell. The Dow industrials added 0.2 per cent and the Nasdaq composite rose 0.6 per cent.

The US government’s first estimate of growth for the third quarter showed inflation remained high, while a separate report said consumer confidence faded further in December. The US economy expanded at a 3.8 per cent annual pace in April-June.

The Federal Reserve’s favoured inflation gauge — called the personal consumption expenditures index, or PCE — climbed to a 2.8 per cent annual pace in the last quarter, up from 2.1 per cent in the second quarter.

On Wednesday, the Labour Department will release its weekly data on applications for jobless benefits, which stands as a proxy for US layoffs.

Investors are betting the Fed will hold steady on interest rates at its January meeting. Recent reports show high inflation and shaky confidence among consumers worried about high prices. The labour market has been slowing, and retail sales have weakened.